S&P: Irkutskenergo view positive

Standard & Poor's said it revised its outlook on Irkutskenergo, AO EiE to positive from stable, reflecting expected improvement in its business and strategic risk. The agency also affirmed the B+ long-term corporate credit and ruA Russia national scale ratings.

The ratings reflect the absence of efficient corporate governance balancing mechanisms and risks surrounding the possible ownership unbundling of generation and distribution operations, the agency said. The evolving industry regulatory regime and high customer and supplier concentration also constrain the rating, S&P said.

These risks are offset by Irkutskenergo's dominant incumbent position in the Irkutsk Oblast, low-cost hydro generation capacity, good medium-term regional power demand growth prospects and low debt leverage, S&P added.

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